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FastMed Urgent Care

healthcare
PE-OWNED

Walk-in urgent care clinic operator providing immediate medical care services.

PE-OWNED

Acquired by KKR2020-08-25

View PE Firm Profile

What Made It Great

“

Convenient urgent care access with extended hours and multiple locations

What PE Will Likely Do

Predictions

Reductions in nursing staff and increased reliance on lower-skilled medical assistants, leading to longer wait times and less attentive care for patients

HIGH LIKELIHOODBased on: KKR's track record of cost-cutting, debt loading, and extracting management fees in acquired companies

Aggressive billing practices, including upcoding of procedures and diagnoses to maximize reimbursements, potentially resulting in higher out-of-pocket costs for patients

HIGH LIKELIHOODBased on: The healthcare industry playbook commonly used by private equity firms, including staffing reductions, real estate sale-leasebacks, billing upcoding, and service line cuts

Closure or scaling back of less profitable but essential services, such as mental health or pediatric care, limiting access to comprehensive healthcare for the community

HIGH LIKELIHOODBased on: The similar negative outcomes experienced by other healthcare companies acquired by private equity, such as Envision Healthcare

Extraction of large management and consulting fees, diverting funds away from direct patient care and investments in equipment and facilities

HIGH LIKELIHOODBased on: The similar negative outcomes experienced by other healthcare companies acquired by private equity, such as Envision Healthcare

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'optimization' efforts and leadership changes, with little immediate impact on patient experience

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Gradual staffing reductions and service line reviews, leading to longer wait times and fewer available services

12-24 months

“12 to 24 months months”

Noticeable decline in service quality, with longer wait times, rushed appointments, and reduced access to certain medical specialties

24-36 months

“24 to 36 months months”

Potential closure of underperforming locations, service line eliminations, and quality-related scandals or regulatory actions

36+ months

“36+ months months”

Potential financial distress, bankruptcy, or sale of the company to another operator, further disrupting patient care and access

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Steward Health Care

Cerberus Capital Management·2010

See full case study
Operating

Envision Healthcare

KKR·2018

See full case study
Operating

US Dermatology Partners

Ares Management·2016

See full case study
Operating

Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
Operating

Sound Physicians

Summit Partners·2019

See full case study

What You Can Do

Take Action

Actions

  • Monitor for any changes in the quality of care, such as longer wait times, rushed appointments, or reduced access to certain medical services

  • Be aware of potential increases in out-of-pocket costs due to billing upcoding or other practices aimed at maximizing reimbursements

  • Advocate for the preservation of essential services, such as mental health and pediatric care, which may be at risk of being cut

  • Stay informed about the company's financial health and be prepared to seek alternative healthcare providers if the quality of care declines significantly

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"FastMed Urgent Care is now PE-owned. Here's what that means for you."